My Opinion on Buying a Home Now In Flagstaff, AZ 

As mentioned in one of my blog posts last week, we are seeing the impact of mortgage investor uneasiness on "prime" not just the sub-prime borrowers.  These mortgages exceed the $417,000 limit for loans eligible for purchase and guarantee by Fannie and Freddie. They account for about 16% of the total mortgage market nationally, but perhaps for a higher percentage in places like Flagstaff where homes are more expensive than the national average.

This morning's Wall Street Journal, page 1, reported that lenders were charging an average 7.34% for prime 30-year fixed-rate jumbo loans yesterday, according to a survey by financial publisher HSH Associates. That is up from an average of about 7.1% last week and 6.5% in mid-May. These rates are still below my personal comfort level of 8%. (Although I've purchased two homes at rates higher than that -- back in the good old days of the 1970s and 1980s - and both turned into wise decisions.) 

I believe we've not seen the end of rising rates, so if you're in the transaction process, lock now. If you're just thinking of buying, load (buy now) and lock. (Excuse the humor, they may keep me indoors too often.)

For my view of the real estate market in Flagstaff now, see that earlier post.

Ann Heitland - visit my Flagstaff real estate website to get started.